Advanced Energy Perspectives

All eyes were focused on energy negotiations in Washington for the better part of 2021, but with less fanfare, advanced energy companies powered a record-breaking year for investment in the energy transition. BloombergNEF and the Business Council for Sustainable Energy’s 10^th annual Sustainable Energy in America 2022 Factbook released last week quantifies the industry’s progress with year-over-year data and insights on energy efficiency and renewables. The Factbook records new highs in the deployment of renewable power, battery storage, and electric transportation, despite lingering COVID setbacks and supply chain bottlenecks economy wide.

Like anyone in construction, renewable energy developers are all too familiar with process hurdles and delays. But patience wears thin. In the vast PJM Interconnection region stretching from DC to Illinois, a huge pool of solar, wind, and battery storage projects are stuck in the grid operator’s Interconnection queue, often waiting years for technical and cost studies and final approvals needed to connect to the grid. This usually behind-the-scenes issue moved to center stage this month when PJM proposed a dramatic step: a two-year pause on formally accepting new interconnection applications so that the grid operator can focus on speeding up delayed projects and clearing some of the backlog. That pause will come with much needed improvements to PJM’s processes to speed up future interconnection requests. Those improvements won’t solve all the problems with PJM’s interconnection process, but they are a good start, and they can’t come soon enough.